trending Market Intelligence /marketintelligence/en/news-insights/trending/egqjfpzpqovxj0k_gioljq2 content esgSubNav
In This List

Monte dei Paschi to sell Belgian unit to funds managed by Warburg Pincus

Blog

Banking Essentials Newsletter 2021: December Edition

Blog

Automating Credit Risk Surveillance Using Statistical Models

Blog

Post-webinar Q&A: Speed and Scalability – Automation in Credit Risk Modeling

Case Study

A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade


Monte dei Paschi to sell Belgian unit to funds managed by Warburg Pincus

Banca Monte dei Paschi di Siena SpA agreed to sell Belgian unit Banca Monte Paschi Belgio SA to a company participated by funds managed by U.S.-based private equity firm Warburg Pincus LLC for €42 million, subject to an adjustment mechanism.

The transaction is subject to approval from the National Bank of Belgium and the European Central Bank. It will not have a meaningful impact on Monte dei Paschi's common equity Tier 1 ratio and was already accounted for in its restructuring plan, the Italian lender said.

Rothschild & Co. served as financial adviser to Monte dei Paschi in relation to the dael, while Orrick Herrington & Sutcliffe served as legal adviser.

Banca Monte Paschi Belgio has total assets worth €1.5 billion, loans to customers worth €800 million, direct funding of €1 billion and a book value of €110 million as of 2017-end.

The sale of Banca Monte Paschi Belgio is part of a deal reached with the European Commission in 2017 that enabled the Italian lender to receive €5.4 billion in precautionary recapitalization.